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Effective January 1, 2009

Retirement Programs

Full-time and part-time Medical Center salaried employees are eligible to participate in the Medical Center Retirement Plan. The choice of a retirement plan is irrevocable as long as the participant is employed as a Medical Center salaried employee at the University of Virginia. Full-time employees of the Medical Center who were members of the Virginia Retirement System prior to hire may select either the VRS or the MCRP. The Virginia Retirement System also permits disability retirement, which awards benefits to a member if the following conditions apply for members who become mentally or physically unable to perform their job duties and the disability is likely to be permanent. Regular disability retirement benefits are based upon the average annual salary paid during the highest 36 consecutive months of credited service. Selection of a retirement plan must be made within 60 days of employment. For employees who are eligible to select, failure to do so will result in default into the Medical Center Retirement Plan, and the inability to return to the VRS while employed at the Medical Center.

A. Medical Center Retirement Plan (MCRP) 
The Medical Center's Optional Retirement Plan is a "defined contribution" plan with retirement benefits based on tax-deferred accumulations. Accumulations are employer-provided contributions plus investment returns over the course of the participant's working years. Vesting in the retirement plan is 100 percent after 12 months of continuous service for those hired prior to September 30, 2002, and 24 months of continuous service for those hired on or after September 30, 2002 . The current employer-paid contribution is four percent of salary for employees hired on or after September 30, 2002. If you were hired prior to this date the employer paid contribution is 8 percent of salary. Investment options are available through Fidelity Investments, TIAA/CREF or Vanguard. A change in retirement plan vendor may only be made three times per year; however, investment options within a vendor may be changed at any time by contacting the vendor directly.

To prepare for retirement, you may want to register and attend a Retirement Education Seminar (RES), please also review the Medical Center Pre-Retirement Guide. For information regarding retiree health insurance, see the
Retiree Health Benefits Program.

B. Virginia Retirement System (VRS)
VRS is a "defined benefit" plan with retirement benefits based on years of service, age at retirement, and average annual salary paid during the highest 36 consecutive months of credited service. The contribution needed to fund the system is actuarially determined and adjusted every two years. The total contribution is paid for participants by the University. VRS provides retirement benefits as early as age 50 with at least ten years of service. There is an annual cost-of-living increase for retirees, beginning in the second calendar year after retirement. Full retirement benefits are available for employees with 30 years of service and at least age 50. Visit the VRS website at http://www.varetire.org or call toll free (888) 827-3847.